Of course, for cryptocurrency traders, most of whom expected a blow in the fourth quarter of 2024, Ethereum was nothing more than a disappointment. While Bitcoin has increased to over $ 100,000, even for a short period of $ 109,000, the second most precious coin was not even able to break and hold $ 4,000. What is worse, after having peaks in December 2024, the bears had the upper hand, forcing the lowest prices. Several factors are the fault, including the increase in competition and users who choose to exchange meme coins on Solana instead of Ethereum. Solana’s approval by the Trumps also makes the possibility that a bull Eth manages a challenge.
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The traders expect Eth to break violently
However, some traders are optimistic. On X, there are those who believe that Ethereum is not only preparing to break, shaking off the weakness of this week, but when he does it, the legs will be nothing more than “explosive”.
The analyst specifically underlined favorable technicians and the fact that the prices moved within an increasing wedge.
Now near the peak of the Cuneo, a breakout could raise the coin to a high fresh, creating a solid base for the continuation of the trend.
In the analyst’s evaluation, the current ETH market structure is “surprisingly” similar to the BTC configuration that led it to the maximum maximums of all time.
Infonditation, another analyst said that Eth is ready for teleported and this time the destination is $ 8,000.
It also seems that there is a consensus on the fact that if Ethereum bursts out, the rally will be unstoppable. With the evaluation of another analyst, the coin could easily 7x later.
Optimist how traders and owners are, there is not much to read from the price graphs. The coin is printing minimums and lower risks below the minimum Q4 2024 of $ 2,000. If the sellers jump back, confirming this week’s losses, the probability of further sell-off will be high.
The only time this perspective changes is once ETH breaks $ 3,500 and, ideally, $ 4,000. Only then can buyers prepare for “explosive” earnings since nobody will want to lose their leg.
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Ethereum who faces strong competition despite updates
Before this, Ethereum developers are excited to resize the mainnet.
The team has recently increased the checking gas limit from previous 30 million gas units to 31 million, for the first time since 2021, when it was doubled from 15 to 30 million. This increase means that each block on Ethereum can now manage multiple transactions and intelligent contractual executions.
For the first time in Ethereum Pos, the validators voted to increase the gas limit and is happening now.
We have seen the last gas limit with London Hardfork increase in August 2021, still power. pic.twitter.com/jt8jdcwcqm
– Toni Wahrstätter ⟠(@Nero_eth) February 4, 2025
The increase in the block gas limit is a form of chain downsizing, but it remains to be seen if the network will keep the step with Solana.
JP Morgan analysts believe that Ethereum will continue to face intense competition from rival networks, including its layer-2 solutions as arbitrum and base.
In combination with the relatively weak narrative of Eth as a value shop, the coin could fight for the momentum.
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